Family-owned Simba Corporation has announced restructuring plans in its motor business that will see a number of employees laid off.
Chief Executive Officer Dinesh Kotecha said in a statement released yesterday that the impact of the coronavirus pandemic had "compounded what was already a very difficult business environment over the past few months."
Mr Kotecha said the motor industry in the country has declined by over 25 per cent in the first five months of the year, consequently hitting Simba Corp's motor vehicle sales.
“It has, therefore, become necessary to evaluate our operations to achieve better efficiencies and identify areas where cost reduction measures can be implemented to ensure the long-term sustainability and success of the business,” he said.
Kotecha noted that after a long, consultative process, there was a need to restructure the firm’s business to create "a more agile and flexible structure that enables us to quickly respond to market fluctuations."
Simba Corporation is the local franchise holder for Mahindra which it assembles locally. It also represents the distribution and services for a range of Mitsubishi and Fuso trucks. The organisation has also interests in other areas like hospitality and financial services.
Those affected by the redundancy will be notified at the end of this month, said Kotecha. In May, DT Dobie also announced redundancy plans due to a Covid-19-related impact.